name of Snow, has located at Tongas and is doing quite a trade with Alaska Indians, getting his supplies from Fort Simpson, British Columbia. Should a cutter visit this district, it will be advisable for her to call at Tongas. Blankets, silk handkerchiefs, beads, red cloth, and guns are the chief articles that find a ready sale at Tongass. At Sitka all was quiet, except a little trouble among the Indians. Whisky flows there as free as water. Appearances seemed as though everybody was making and selling it. I am, sir, respectfully, your obedient servant, Maj. WM. GOUVERNEUR MORRIS, I. C. DENNIS, Deputy Collector of Customs' Special Agent Treasury Department, Port Townsend, Washington Territory. To which the following reply was made by me: OFFICE OF SPECIAL AGENT OF THE TREASURY DEPARTMENT, SIR: I am in receipt of your communication of February 23, touching the unfortunate condition of affairs at your port, and shall transmit it by the next mail to the department, with a strong indorsement that you be sustained in your manly and energetic efforts to enforce peace, law, and order. My letter of January 26, in reply to yours of the 15th of that month, was not in any manner intended to find fault with the course which the evident necessity of events has been forced upon you. I sent a copy of that letter to the department. I fully realize the position in which you are placed, and assure you that you have my sincere sympathy in the difficult and exceeding dangerous role you have to play, and I will stand by you both officially and privately to the last. I am myself placed in a very delicate position in regard to your district. Its abolition having been recommended by the honorable Secretary is the reason, I presume, why our reports and communications have not been acted upon promptly by the department. I have no general or specific instructions from the Secretary touching the policy to pursue, hence I must exercise extreme caution in giving you any instructions. Whatever I may say should be more strictly construed as suggestive. You are on the spot, and certainly must be the best judge of what emergency may dictate. From the fact that the department has recently sent to the Senate a new nomination as collector of the district of Alaska, I infer it is by no means certain the district will be abolished. The Secretary has written me a letter, signed by himself, directing I report fully, and at an early day, "whatever views or considerations I may have to urge upon the department in the matter." I am now compiling the data, and shall get the report to Washington as soon as practicable. In regard to the seizure of the two bales of English blankets you knew to have been smuggled last summer, and now in the house of an Indian, you undoubtedly have the authority, and it is manifestly your duty, to seize them. Whether it is prudent to do so now, you must be the judge, bearing in mind if the seizure is deferred the merchandise may be surreptitiously gotten out of the way. I certainly do not deem it advisable, under existing circumstances, for you to make a general raid for smuggled goods. Better wait until you have an armed force at your back. I feel certain you will have a revenue-steamer sent you as soon as the authorities at Washington can act upon your report and the recommendations I shall make. In the mean time the notices I have prepared for you, touching the speedy advent of such vessel, may have the effect of intimidating the lawless horde of white and copper-colored vagabonds by whom you are surrounded. The giving publicity to the speedy arrival of a revenue-cutter is of course left to your own judgment. If you think it will interfere with any seizures which might be made at Tongas or Wrangel, perhaps it would be better it should not be made known. If necessary to enforce your authority, use it by all means. I cannot properly advise you upon your proposed disposition of the fines you have levied. They certainly do not belong to the customs. Would it not be well to wait until we can have departmental action in this matter? Do not contemplate resigning for one moment. Like yourself, I am satisfied Alaska has seen her darkest days, and I trust I may be able to impress upon the department that your Territory is not an elephant upon its hands, and only fit for polar bears to live in. I note what you say about the illicit trade at Tongas, and shall make special mention of it in my report. It only goes to show how utterly the department lacks proper information upon the necessary points in your district where customs officers should be stationed. In all probability I shall be ordered in the cutter and charged with the inspection and investigation of all matters in your district. I shall avail myself of your suggestions and experience, and shall take pleasure in making your personal acquaintance. In regard to the seizure of giant powder, I will write you hereafter. I shall send this to Victoria, to be forwarded by the Otter, should she sail before the California. I am, respectfully, your obedient servant, I. C. DENNIS, Esq., WM. GOUVERNEUR MORRIS, Deputy Collector of Customs, Wrangel, Alaska. Special Agent. In order that the situation of affairs may be more readily understood, the following correspondence is here inserted: CUSTOM-HOUSE, WRANGEL, ALASKA TERRITORY, January 15, 1878. SIR: Yours of the 5th instant, with inclosure, received. I was greatly surprised at not meeting Colonel De Ahna on arrival of the California. I have transmitted to the Sitka office all collections made up to 1st January. In future I shall retain, for safe keeping, all moneys received, unless otherwise directed. Regarding the state of affairs at this port, I have to say that at present all is quiet. But during the holidays serious trouble almost occurred. Whisky-making by white men and Indians had become so common, and the amount of liquor smuggled into this port being so great, the consequences were that all our hoodlums and loafers were engaged in the traffic. Many men became drunk and riotous, and with difficulty the customs force, aided by a few citizens, prevented bloodshed. One John Petelin, a Russian by birth, sold to an Indian some whisky of his manufacture, which caused a drunken row among the Indians, in which several got seriously hurt. On the following day the "church Indians" (those who attend school and church here) concluded to make an example of somebody; therefore they marched to the Russian's house, seized his still and liquor, and, with him in custody, marched to the ranch. Coming to me for instructions, I advised them to tie the culprit to a post for one hour; which was done. This act created considerable excitement among the bad white men, for they did not know when their turn might come. For two years I have endeavored to prevent the manufacture of liquor here by advising. But talk won't do; punishment must be inflicted in order to drive terror to the hearts of the guilty. Seeing that something must be done to prevent a conflict between law-abiding Indians and bad white men, I, with Mr. Millitich, deputy collector from Tongas, made a raid on the town and Indian ranch. Result, 21 stills, several gallons of "hootzenoo," and mash sufficient to make liquor enough to demoralize all the Indians in Alaska, were found and destroyed. The destroying of stills and liquor won't accomplish anything, only for the time being, unless punishment follows. I have controlled the Indians thus far by threatening what will occur unless they quit their unlawful traffic. We have white men here who are far worse than the Indians, for they are not intimidated by threats. As they have always got clear on their liquor transactions, they think there is no punishment that can be inflicted for manufacturing and selling liquor in Alaska. I desire to know whether the department wishes the manufacture of liquor by whites and Indians in Alaska stopped, and whether the courts have jurisdiction and will punish all found guilty. Further, does the department consider it my duty to search the dwellings of white men and Indian ranches for distilleries and liquor? As to any trouble arising from the Indians on account of anything I may do towards stopping the liquor traffic, I have nothing to fear. A majority of the Indians here are law-abiding, and will act with me in trying to preserve good order. We have here several white men who need the strong arm of law to keep them quiet. I am no coward, but I detest having revolvers drawn on me, for fools sometimes shoot accidentally. Should you deem it advisable to have the liquor dealers at this place prosecuted, please so inform me, and I will soon get a case. Also instruct me if I have any power or right to admit liquor for medical purposes to be landed at this port. I am, sir, respectfully, your obedient servant, Maj. WM. GOUVERNEUR MORRIS, Special Agent Treasury Department, Victoria, B. C. ISAAC C. DENNIS, Deputy Collector. REPLY. OFFICE OF SPECIAL AGENT OF THE TREASURY DEPARTMENT, Port Townsend, Wash. T., January 26, 1878. SIR: I am in receipt of your interesting report of the 15th instant, touching the condition of affairs at the port of Wrangel, and will take pleasure in transmitting it to the department, in order that certain inquiries made of myself shall be directly submitted to the Secretary. The Secretary having recommended the abolition of the customs district of Alaska, and not being made aware of the present policy of the department towards Alaska, Í cannot assume the responsibility of advising you upon the subject of stopping the manufacture of liquor, or whether it is your duty "to search the dwellings of white men and Indian ranches for distilleries and liquor." These are questions which present a side issue, and not directly involved in the collection of the revenue, and can only be determined by the Secretary himself. The courts of Oregon have held as follows (see decision of Mr. Justice Deady in the case of the United States vs. Terenta Savaloff): That the jurisdiction of the district court for the district of Oregon over offenses committed in Alaska is conferred by section 7 of the act of July 27, 1868, and by such section confined to violations of that act and the laws "relating to customs, commerce, and navigation," and therefore it has no jurisdiction over the crime of distilling spirits therein without paying a tax therefor. Section 2141 Revised Statutes makes it the duty of every superintendent of Indian affairs, Indian agent or subagent, within the limits of their agency, to destroy and break up any distillery of ardent spirits found therein. My own opinion is, that a customs officer should be very careful how he assumes any such responsibility; it is certainly not to my knowledge conferred by any statute of the United States. It is a mere individual act; and whilst the results of your action may prove, and doubtless will, highly beneficial, I would in future be very careful how I proceeded in like cases. Congress has been appealed to, time and again, to enact suitable legislation for the government of your Territory, and has neglected to frame suitable laws. You are living in a state of chaos, and under all the circumstances, I presume frequently for the safety of your own lives, are compelled to make laws for yourselves. It was different when Alaska was under the control of the War Department, for its officers are authorized to perform many acts which are not delegated to a mere civilian. These views are submitted as the result of my own convictions, and are not intended in the light of instructions, nor to be construed as any reflection whatever upon the course you have seen fit to pursue; in fact, the absolute seeming necessity which has existed for your prompt and decisive action, in my judgment, should act as an incentive to Congress to take up at an early date the subject of Alaskan government and provide some suitable protection for its citizens and punishment for crime. As said before, the honorable Secretary must be fully advised in the premises for his guidance; this agency can only instruct you upon what legitimately comes within the law and regulations touching the collection of the revenue. The law unquestionably confers upon the War Department the exclusive authority for the introduction of spirituou or vinous liquors into the Territory of Alaska. Since the withdrawal of the troops General Howard has refused to issue any permits for such introduction. I am, therefore, clearly of the opinion that unless a shipment of ardent spirits or wines to Alaska is sanctioned by the military authorities, you have no authority to permit the introduction, either for medicinal purposes or for any purpose whatever, and you should seize all such merchandise. The shipment of liquors to Alaska has recently been made the subject of a report from this agency to the department; when reply is made thereto you shall be duly advised. I note what you say in reference to the retention of all collections for the future, for safe-keeping, unless otherwise instructed. When allusion was made to this in my letter from Victoria, of the 5th instant, it was merely intended as suggestive, and I see no objection, under the condition in which your district has been left, for you to pursue, in reference to your money collections, such course as may seem best to yourself. Doubtless instructions will soon be sent from Washington upon this subject. Please, until further advised, address me at Port Townsend, and let me hear from you frequently, and any assistance I can render you in any way will be cheerfully accorded. I am, respectfully, your obedient servant, I. C. DENNIS, Esq., WM. GOUVERNEUR MORRIS, Deputy Collector of Customs Wrangel, Alaska. Following the letter of February 23, came the following from Mr. Dennis: CUSTOM-HOUSE, WRANGEL, ALASKA, SIR: In reply to your letter of 4th instant, I have the honor to state that, under date of 23d ultimo, I addressed a letter to you, in which the condition of affairs at this port were freely set forth. The said letter I forwarded per steamer Otter, and beyond doubt you have received it ere this. At present writing all is quiet at this port. The Indians and white men who have been endeavoring to create trouble have come to the conclusion that it won't do to fool with me. I have in my previous letter advised you of my taking a canoe from an Indian who attempted to shoot one of my Indian policemen. Finding that I would not return to him his canoe without paying a fine he commenced making threats of what he would do. Seeing that talk would not frighten me he concluded to test me further, and a few days after our "talk" fourteen large buck Indians came to take the canoe. I happened to step from the office just as they had picked up the canoe and were walking off with it. Telling them to let the canoe alone, and finding no attention paid to my demand, I stepped into my office, got my rifle, rushed out, and told them to drop the canoe or I would kill the whole lot of them. Seeing that I meant business they put the canoe back. On investigating the matter they told me that a white man told them to come and take the canoe, and that I would not dare to interfere. A few days after this occurrence the Indian came and wanted to know on what conditions I would let him have the canoe. I told him that if he paid me $25 he could have the canoe, otherwise he could not. After a long pow-wow he paid the amount, or rather the equivalent in blankets, &c. I told him that if he in future interferes with my authority I will hang him, and his reply was, "You have made a good Indian of me, and in future I will behave myself." As I have said before, when you touch an Indian's pocket you touch his heart; at least such has been my experience with the Indians of Alaska, and it proves the fact that by extending civil law over this Territory the Indians can be controlled better than by any other mode. The want of law here is daily more keenly felt. I am annoyed continually by Indians and white men who come to me to settle disputes. What can I do? In many instances the charges are so aggravating that I must act in order to prevent bloodshed. I am becoming so disgusted with the state of affairs that I am leave the country in disgust; while, on the other hand, I believe get worse, and there are prospects of their becoming much better. Congress will legislate on Alaska, is my humble prayer. most tempted to that affairs can't That the present From present appearances the Stickine River will be open to navigation by the 10th of April, if not sooner. Many miners are here, unable to get up the river on account of the ice being dangerous to travel. I have to inform you that Mr. Snow, the trader at Tongass, has been importing merchandise from Fort Simpson, British Columbia, without entering the same at this office and paying duties on the same. He has written me that he will be at this port in May next, and will pay duty on what he has imported. Can I permit him to make entry of goods thus introduced into this district, by his producing what he claims to be true invoices of all goods imported by him?" Trusting that I may hear from you regarding this matter by return steamer, Maj. Wм. GOUVERNEUR MORRIS, I. C. DENNIS, Deputy Collector. Special Agent Treasury Department, Victoria, B. C. Up to the time of my leaving Alaska no instructions had been received by Mr. Dennis touching the course to be pursued by him, nor has the department intimated to me in any manner whatever what policy to adopt. The department acted upon the letter of February 23 without delay, and telegraphed as follows: To H. A. WEBSTER, WASHINGTON, April 10, 1878. (Received at Townsend, 11, 1878—9.30 a. m.) Collector of Customs, Port Townsend: Direct Captain Selden to place Wolcott in readiness, take on necessary supplies, and proceed with command to Wrangel and Sitka, Alaska, remaining in those waters while protection of revenue and other public interests require. Telegraph date of sailing. JOHN B. HAWLEY, Acting Secretary. On the 13th of April, I was directed by telegraph to take passage in the Wolcott, and on the 15th was again telegraphed to proceed, and my instructions were enlarged, and full power given me to use my best judgment in acting upon everything which came before me. At 4 a. m. April 16 we weighed anchor and sailed from Puget Sound. The first part of this report will be devoted to a description of and examination proper of THE CUSTOMS DISTRICT OF ALASKA. The examination of the district begins with the 1st day of May of the last fiscal year, and goes back prior to the Congressional organization thereof; so that its trade and commerce, past, present, and future, can be seen at a glance. The collection district of Alaska was established July 27, 1868, and embraces the whole of the Russian purchase, with its ports, harbors, bays, rivers, and waters. The port of entry was designated at or near the town of Sitka, or New Archangel; a collector authorized to be appointed at an annual salary of $2,500, in addition to the usual fees and emoluments of the office; maximum compensation fixed at $4,000. The following discloses the receipts and disbursements of the district, since customs collections were first made at Sitka, as far as can be ascertained from the records of the office, which are incomplete prior to July 1, 1869. Previous to this time the office was not supplied with the proper forms and books. The amount of duties collected prior to July 1, 1869, can only be approximately ascertained. Nothing can be gleaned from the records of the several sums collected as hospital moneys, tonnage tax, and fines, penalties, and forfeitures before July 1, 1869, embracing the administrations of Collectors Dodge, Ketchum, and Falconer. Neither are there any data or memoranda of expenses incurred during this time for collecting the revenue. Previous to Congress making permanent provision for a customs-district in the Territory, the department, acting under the power to make regulations to carry out the revenue laws, and actuated by a desire to accommodate the inhabitants and promote the public welfare, determined temporarily to permit the importation of foreign merchandise, and accordingly, in August, 1867, William S. Dodge was appointed by the Hon. Hugh McCulloch, then Secretary of the Treasury, a special agent and acting collector for the district of country ceded by the Russian Government to the United States, and charged in conclusion of his letter of instructions by the Secretary in the following language: You will, by a careful perusal of your instructions, which have been approved by the Solicitor, and an attentive examination of the accompanying papers, scarcely fail to comprehend the requirements of your position, and by your urbane and upright deportment in so doing materially serve to draw in closer bonds of sympathy the people thus newly incorporated into our Union. It will be observed that no mention is made of the amount of official fees collected. This would entail much and unnecessary labor, and would be of no practical benefit, for the reason that all such fees go to swell the salary of the collector, and the United States derives no benefit from them whatever, save when they exceed the maximun compensation allowed by law to the collector. In no instance has this happened in any year, and they are therefore omitted. It may be remarked, |